|Real Madrid are now the highest-earning football club in the world|
Real Madrid have been confirmed as the world's highest-earning football club after revealing their latest financial figures. The Spanish giants posted record revenues over the course of 2015-16, with earnings rising 7.4 per cent to €620million.
Those eye-watering sums put the 11-time European champions out of sight at the top of the world money league, ahead of nearest rivals Manchester United and Barcelona. Barca's revenue in the same period was €679m but included around €70m in player sales - which Madrid's did not - while United announced earnings of €570m in September.
Furthermore, Los Blancos paid off €96m of debt, even if their overall profit decreased by a margin of 22.5 per cent from €55.9m to €43.3m.
A club statement read: 'Operating revenues for the financial year 2015-16, without taking into account capital gains obtained as a result of player transfers, have topped €600million euros for the first time. 'The operating result before repayments and player transfers ('recurring EBITDA') has risen to €163.2m, which is the highest figure ever reached by the club.
'This improvement in profitability is due to an increase in revenues having subtracted operating expenses and provisions corresponding to risks and contingencies.
'A pre-tax profit of €43.3m has been recorded, which is 22.5 per cent less than the previous financial year. This is due to the non-recurrent effect of player transfers, despite the operating improvements recorded. After achieving a net profit (after tax) of €30.3m, net worth has risen to €442.2m.
'The cash balance has risen by €102.6m to reach a figure of €211.5m, thanks to higher cash flow generated by operations and restraints on investments. 'As a result of the increase in liquid assets and the reduction of creditor balances by investments, the net debt has fallen by €108.9m to sit at a figure of €-13.1m, which in reality represents not a debt but rather a net liquidity position.